The Failure of Market Solutions and the Green New Deal – Pt 2

Alyssa Battistoni – 

As I argued in Part I of this post, we need to rethink not only the scope of state intervention in the economy, but what exactly the economy is. Instead of focusing on the industrial manufacturing “inside” the economy and trying to clean up the externalities that inevitably spill out, we need an economic policy that takes seriously the social and ecological functions that have been treated as external to the economy altogether. That is to say—we can no longer think of things like social and ecological wellbeing as “post-material” concerns or something to address as a “justice” bonus after we’ve gotten the economy growing again. Rather, these things are fundamental to how the economy works. So how far does “industrial policy” extend, and what would it mean with respect to social reproduction and ecological reproduction, from care work to carbon sequestration? And what in turn does this mean for the future of state action?

Climate discourse frequently moves almost seamlessly between the language of the “Green New Deal” and the call for “wartime mobilization.” World War II, this argument goes, is an example of undertaking rapid economic transformation in the face of emergency. As Bill McKibben writes, “Turning out more solar panels and wind turbines may not sound like warfare, but it’s exactly what won World War II: not just massive invasions and pitched tank battles and ferocious aerial bombardments, but the wholesale industrial retooling that was needed to build weapons and supply troops on a previously unprecedented scale.” To move away from fossil fuels, we need to “build a hell of a lot of factories to turn out thousands of acres of solar panels, and wind turbines the length of football fields, and millions and millions of electric cars and buses.” We do need to build a lot of solar panels and other clean energy technologies. But that’s a short-term transition strategy—not a model for a new economy. After the war, the expanded productive capacity was redeployed again, towards mass production of consumer goods for the benefit of private capital, with serious environmental consequences. But the emphasis on building factories also fits uneasily with the New Deal analogy.

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The Failure of Market Solutions and the Green New Deal – Pt 1

Alyssa Battistoni – 

market failures.jpgFor the three decades that climate change has been a political issue, it has been understood primarily as an instance of severe “market failure”: as the 2006 Stern Review on the Economics of Climate Change explains, “greenhouse gas emissions are externalities and represent the biggest market failure the world has seen.” In other words, carbon emissions do not have a direct price, meaning that emissions send no market signals and are not included in economic decision-making. The most prominent solutions to climate change have followed this model, recommending a carbon tax or other economic measures by which to “internalize the externality” of greenhouse gas emissions—to account for the social and environmental costs of carbon. Pricing carbon is supposed to make fossil fuels more expensive, ostensibly creating incentives for innovation in clean energy and other green technologies, and in turn prompting a shift towards their use.

In this first of two posts, I’ll explain how this model developed, and what kind of intervention the Green New Deal represents. In short, the scale of transformation called for implies a far more robust role for the state, going beyond mere market corrections to more substantial intervention in the economy. I’m not convinced, however, that the current framing of the Green New Deal is steeped in a vision of the old economy, and doesn’t address necessary support for social and ecological reproduction. (I’ll elaborate that critique in my second post.)

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Moving Environmental Politics Out of the Courts

Alyssa Battistoni— 

On the campaign trail in 2016, Donald Trump took aim at Barack Obama’s signature climate change policy, the Clean Power Plan, as a “job-killing regulation.” Trump vowed to tackle regulations “on Day One.” By March 2017, he had signed an executive order directing EPA head Scott Pruitt to review the policy.

But even before Trump was elected, over half the states in the country joined oil and gas companies in suing to overturn the Clean Power Plan in 2016, accusing the EPA of “regulatory overreach.” Now that Trump is trying to roll back the CPP, a group of seventeen different states is suing the EPA to stop it from delaying implementation of the plan. The courts may save the Obama policy yet. But the ongoing litigation battles illustrate how court-centric environmental politics have become, and the limits of legal strategies in achieving political victories.

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Understanding the Political Economy of Academia Through the Tax Bills

Alyssa Battistoni

Paying for corporate tax cuts with revenue raised from grad students and universities sounds like a parody of a Republican tax bill. Unfortunately–like many seeming parodies these days–it was all too real. The tax bill that originally passed the House would have taxed both graduate student tuition waivers and university endowments above a certain level, measured per-student.

free yale pic

The tax on tuition relief wasn’t in the version of the bill that passed the Senate, and has been dropped from the bill entirely in the reconciliation process—thanks largely to grad students and their unions, who led a wave of protests against the provision. The endowment tax, however, remains intact despite the best lobbying efforts of university administrators.

Understanding the various versions of the bill in relation to both grad students and endowments provides a valuable window into the political economy of contemporary academia. In particular, Congressional Republicans have unintentionally revealed the ways in which the labels of “school” and “student” are only partial descriptors of contemporary universities and the people who study at them.

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